In Minnesota, can a Canine Dimensions franchisee consent to termination penalties?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
Minn.
Rule Part 2860.4400J. prohibits a franchisee from waiving his rights to a jury trial or waiving his rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction, or consenting to liquidated damages, termination penalties or judgment notes.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, Minnesota franchisees are protected from consenting to termination penalties. The FDD outlines specific addenda for Minnesota, which directly address franchisee rights and waivers.
Specifically, Minnesota Rule Part 2860.4400J prohibits a franchisee from consenting to liquidated damages or termination penalties. This means that any clause in the standard Canine Dimensions franchise agreement that might imply a franchisee's agreement to such penalties is void and unenforceable in Minnesota. This protection ensures that franchisees are not subjected to undue financial burdens upon termination of the agreement.
This provision is designed to protect franchisees from potentially overreaching terms in the franchise agreement, ensuring they are not penalized in ways that could be financially detrimental. Prospective Canine Dimensions franchisees in Minnesota should be aware of this protection, as it can significantly impact their financial exposure should the franchise agreement be terminated.